发布时间：2008.9

摘要

Introduction

This report is an invaluable source of information on the UK travel insurance market. It provides unique market size information and discusses the main challenges and trends facing travel insurance providers. It also reveals which underwriters are leading the way in this market and forecasts what the future holds for the sector in the next five years under two different scenarios.

Scope

• Consumer data giving insight into travel insurance purchasing habits
• Analysis of the major competitive issues shaping the market, supported by interviews with senior industry executives and data from secondary sources
• GWP forecasts to 2012, based on Datamonitor's in-house expertise and proprietary model

Highlights

One of the dominant trends in the UK travel insurance market over the last five years has been the shift towards more annual policy sales as opposed to single trip policies. This trend has resulted in annual policy premium income accounting for a larger proportion of travel insurer's premium income in 2007.

Datamonitor estimates that the number of travel insurance policies written in 2007 increased by 2.4%. This expansion in policy numbers served to offset the decline in premium rates, which have occurred to both single trip and annual cover policies

AXA accounted for 27.1% of the market in 2007, an increase of 6.7 percentage points. The company remained the UK's largest travel insurance underwriter in 2007 and has seen its market share and lead over its nearest rivals increase. AXA's growth in market share was the result of substantial growth in premium income.

Reasons to Purchase

• Plan your future travel insurance strategy using Datamonitor's market size forecasts
• Understand consumer purchasing and decision making behavior to help you optimize acquisition rates
• Benchmark your travel insurance business against the competition

目录及图表

Overview

Catalyst

Summary

Executive Summary

The market grew in 2007 driven by increased volume and a shift towards annual cover

Premium income climbed to an all time high of £718.8m

Annual policy premium income is estimated to have increased its proportion of the market in 2007

Claims frequency is low and the majority of claims are low value

The FSA will begin regulating the travel trade in 2009, though a number have already become tied agents

UK consumers continued to increase their travel abroad in 2007

The number of visits abroad by UK residents increased by 2.3% in 2007

Growth was distributed throughout the year, though the summer months remain favorite times to travel

The fastest growing reason for travel abroad by UK residents was visits to family and friends

Consumers are strongly influenced by the convenience of a product, although product penetration varies by age and income

Convenience, reputation and price are the key influences behind a consumer's purchase decision for travel insurance

Younger consumers are the least inclined to purchase an annual travel insurance policy

Conditions were competitive as consolidation continued among distributors

AXA's market leading position has increased despite weakness in the travel trade

Marketing and advertising outlays climbed to an all time high in 2007

The UK market in the future will remain highly competitive, constraining premium income growth

Competition will remain fierce among underwriters

Distributors will also keep competitive pressures high

Annual growth averaging 4.1% per year is forecast for the UK travel insurance market between 2008 and 2012

Table of Contents

Table of figures

Table of tables

Market Context

Introduction

The market grew in 2007 driven by increased volume and a shift towards annual cover

Premium income climbed to an all time high of £718.8m

Annual policy premium income is estimated to have increased its proportion of the market in 2007

Increases in foreign travel and product penetration have increased the number of policies sold

Premium rates declined marginally due to fierce competition, particularly for annual cover

Profits in the market continued to narrow as claims costs rose faster than premium income

The market was estimated to have remained profitable in 2007

Claims frequency is low and the majority of claims are low value

Medical expenses represent the largest claims cost for insurers

Regulatory change will have a large impact on the market in the near future

The FSA will begin regulating the travel trade in 2009, though a number have already become tied agents

The overseas terrorism bill is not likely to be passed, though insurers are active on the file

Customer focus

Introduction

UK consumers continued to increase their travel abroad in 2007

The number of visits abroad by UK residents increased by 2.3% in 2007

Growth was distributed throughout the year, though the summer months remain favorite times to travel

Europe remains the destination of choice even with other locales gaining in popularity

Visits to family and friends continue to grow at a higher rate than other trips, though holidays still lead

The fastest growing reason for travel abroad by UK residents was visits to family and friends

Holidays abroad are the top reason for foreign travel by UK residents

Consumers are strongly influenced by the convenience of a product, although product penetration varies by age and income

Convenience, reputation and price are the key influences behind a consumer's purchase decision for travel insurance

Product penetration rates for travel insurance are higher among older consumers

The uptake of travel insurance is higher among the more affluent consumer

Annual cover is most popular among consumers aged between 45 and 59 and those who belong to higher income brackets

Younger consumers are the least inclined to purchase an annual travel insurance policy

Affluent consumers have a higher tendency to purchase annual policies

The travel trade has lost market share to cheaper alternatives

Direct, broker and financial product related offerings have increased market share at the expense of the travel trade

Internet based purchases have grown considerably

Compeititive Dynamics

Introduction

Conditions were competitive as consolidation continued among distributors

The merging of SAGA and AA has resulted in a fierce new competitor for underwriters and distributors

AIG acquired Direct Travel Insurance Services in September 2007

R3 Group acquired military travel and holiday specialist Forces Travel

Citybond acquired Aon's travel book in November 2007

The top 10 gained market share as the market grew slowly in 2007

Most top 10 insurers lost market share due to declining GWP

AXA's market leading position has increased despite weakness in the travel trade

Three of the top 10 insurers experienced increasing market share in 2007

Norwich Union's travel insurance book continued to experience robust growth in 2007

Great Lakes has rapidly become a significant underwriter in the UK travel insurance market

ACE wrote more UK originated travel insurance in 2007

A number of the top insurers experienced contracting market shares in 2007

Few large affinity accounts changed hands in 2007

Mondial was one of the more active players in the travel insurance affinity market

Europ Assist has renewed and secured new travel accounts in 2007

Several other affinity accounts were also agreed in 2007 and 2008

Insurance providers increased their travel insurance advertising spending in 2007

Marketing and advertising outlays climbed to an all time high in 2007

Direct mail remains the principle means for advertising travel insurance, though press advertising also grew

The top 10 travel insurance advertisers increased their spending in 2007

Press and direct mail formed the bulk of the advertising spending of the top 10

Saga more than doubled its travel advertising outlays in 2007 to become the lead travel insurance advertiser

Future Decoded

Introduction

The UK market in the future will remain highly competitive, constraining premium income growth

Competition will remain fierce among underwriters

Distributors will also keep competitive pressures high

No large spike in claims is forecast due to natural disaster or terrorist event

The travel insurance market is forecast to attain a value of £880.5m in 2012

Conditions in the market are generally forecast to be flat with no big shifts in market trends

Annual growth averaging 4.1% per year is forecast for the UK travel insurance market between 2008 and 2012

The market is forecast to grow much slower if the bulk of travel agents fail to proactively adapt to regulation

FSA regulation in 2009 could force many smaller travel agents out of the market

The market will grow by an average 3.2% per year over the forecast period

Appendix

Supplementary Information

Market Context

Customer Focus

Competitive Dynamics

Affinity partnerships

Definitions

Brokers

Bancassurers

Brandassurers

Gross written premiums

Geographical areas

Research methodology

Primary research

Market Context

Customer Focus

Ipsos MORI methodology and contacts

Relevant links

Further reading

Ask the analyst

Datamonitor consulting

Disclaimer

List of Tables

Table 1: Estimated UK travel insurance GWP, 2003-07 (£000s)

Table 2: Estimates of UK travel insurance GWP by policy type, 2004-07

Table 3: Number of travel insurance policies written, 2004-07e (000s)

Table 4: UK travel insurance gross loss ratio, 2004-06

Table 5: UK travel insurance claims volume, costs and frequency, 2004-06

Table 6: UK travel insurance claims costs by peril 2004-06

Table 7: Number of visits abroad by UK residents, 2003-07p (000s)

Table 8: UK residents' visits abroad by destination, 2003-07 (000s)

Table 9: UK residents' visits abroad by reason for travel, 2003-07 (000s)

Table 10: Travel insurance product penetration by age group, 2007

Table 11: Travel insurance product penetration by income bracket, 2007

Table 12: Split between annual and single trip polices, by age group, 2007

Table 13: Split between annual and single trip policies, by household income, 2007

Table 14: Distribution of travel insurance GWP by channel, 2003-07 (%)

Table 15: Top 10 UK travel insurers by market share, 2007

Table 16: Top 10 UK travel insurers by market share, 2007 (£000s)

Table 17: UK travel insurance advertising spend by media, 2003-07

Table 18: Top 10 UK travel insurance advertisers by medium, 2007 (£)

Table 19: Top 10 UK travel insurance advertisers, 2005-07 (£)

Table 20: Key variables affecting travel insurance GWP, neutral scenario, 2008e-12f

Table 21: UK travel insurance GWP, neutral forecast, 2003-12f, (£000s)

Table 22: Key variables affecting travel insurance GWP, pessimistic scenario, 2008e-12f

Table 23: UK travel insurance GWP, pessimistic forecast, 2003-12f, (£000s)

Table 24: Number of trips abroad taken by UK residents by quarter, 2004-07p

Table 25: Business travel abroad by UK residents, by destination, 2003-07p

Table 26: Visits to friends and relatives abroad by UK residents, by destination, 2003-07p

Table 27: UK travel insurance competitors by premium income, 2005-07 (£000s)

Table 28: UK travel insurance competitors by market share, 2005-07 (%)

Table 29: Relationships between travel underwriters and major tour operators, 2008

Table 30: Relationships between travel underwriters and online travel agents, 2008

Table 31: Relationships between travel underwriters and low cost airlines, 2008

Table 32: Relationships between travel underwriters and banks and building societies, 2008

Table 33: Relationships between travel underwriters and selected brandassurers, 2008

List of Figures

Figure 1: Visits abroad have increased steadily in recent years

Figure 2: Premium income has continued to climb despite declining rates

Figure 3: The shift towards annual cover has been slight but steady in the last two years

Figure 4: Visits abroad have increased steadily in recent years

Figure 5: Increases in travel were noticeable in Q1 2006 Q4 2005 and 2007 as well as Q2 2007

Figure 6: Trips to Asia and Africa have increased between 2003 and 2007

Figure 7: Visits to friends and relatives have increased

Figure 8: Holidays abroad remain the single most common reason to travel abroad

Figure 9: Convenience was a highly valued factor for consumers purchasing travel insurance

Figure 10: Product penetration increases with the age of consumers, with older consumers more likely to purchase travel insurance

Figure 11: The uptake of travel insurance is likely to increase as income grows

Figure 12: Consumers aged 45-59 are more likely to purchase their travel insurance in the form of annual cover

Figure 13: Consumers with lower household income are more inclined to purchase single trip policies

Figure 14: The travel trade is still the single most important channel when measured by GWP

Figure 15: AXA retains its dominant position in the market with strong growth in premium income

Figure 16: Providers have increased marketing outlays significantly in 2007

Figure 17: Direct mail accounted for almost half of all expenditures on travel insurance advertising

Figure 18: Saga's advertising spend on direct mail is more than double its nearest rival's spend

Figure 19: Steady growth over the forecast period will be driven by increases in premium rates and higher trip volumes

Figure 20: The market will sacrifice almost £57m of potential value in 2009 if a large proportion of travel agents cease offering cover